Financial Performance - GAAP net loss for 2Q25 was $(27.9) million, or $(0.22) per diluted share[4], while net income excluding notable items was $24.5 million, or $0.19 per diluted share[4] - Net interest income before provision for credit losses increased by 17% QoQ to $117.53 million[64] - Noninterest income totaled $(23) million, including a net loss of $39 million from legacy securities AFS repositioning[48]; excluding notable items, noninterest income was $16 million, up 1% QoQ and 44% YoY[48] - GAAP noninterest expense was $109 million, including merger-related costs[52]; excluding notable items, noninterest expense was $92 million, up 13% QoQ[52] Balance Sheet & Capital - Total deposits reached $15.9 billion at 6/30/25, up 10% QoQ, largely due to the Territorial acquisition[5, 18] - Loans receivable totaled $14.4 billion at 6/30/25, up 8% QoQ, also largely reflecting the Territorial acquisition[5, 21] - Total capital ratio was 13.76% at 6/30/25[5] - Tangible common equity (TCE) ratio was 9.43% at 6/30/25[5] Asset Quality - Nonperforming assets (NPA) were $113 million, or 0.61% of total assets at 6/30/25[5] - Criticized loans decreased by 8% QoQ to 2.87% of total loans[5] - Net charge-offs (NCO) were $12 million in 2Q25, or 33bps of average loans, annualized[59] Strategic Initiatives - The acquisition of Territorial Bancorp Inc added $1.7 billion of stable, low-cost deposits and $1.0 billion of residential mortgage loans[5] - Repositioned $418 million of legacy investment securities available-for-sale (AFS) in June 2025, expected to contribute approximately $12 million to interest income annually[5, 36] Outlook - The company anticipates high single-digit % growth for end-of-period loans in 2025[60] - The company anticipates high single-digit % growth for net interest income in 2025[60] - The company anticipates upper-20s % growth for noninterest income (excluding notable items) in 2025[60]

Core Insights - Hope Bancorp reported revenue of $133.43 million for the quarter ended June 2025, marking a year-over-year increase of 14.1% [1] - The EPS for the same period was $0.19, down from $0.22 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $126.92 million by 5.13%, while the EPS fell short of the consensus estimate of $0.21 by 9.52% [1] Financial Metrics - Efficiency Ratio stood at 115.8%, significantly higher than the average estimate of 70.2% based on two analysts [4] - Net Interest Margin was reported at 2.7%, above the average estimate of 2.5% from two analysts [4] - Net charge-offs to average loans were 0.3%, compared to the average estimate of 0.1% [4] - Net Interest Income (before provision) was $117.53 million, exceeding the average estimate of $113.4 million [4] - Total noninterest income reached $15.9 million, surpassing the average estimate of $13.18 million [4] - Net gains on sales of SBA loans were $4 million, compared to the estimated $3.08 million [4] Stock Performance - Shares of Hope Bancorp have returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Core Insights - Value investing focuses on identifying stocks trading below their intrinsic value, allowing investors to benefit as market prices align with true company value over time [1] - Earnings yield, calculated as earnings per share divided by stock price, is a useful metric for identifying undervalued stocks, with a higher yield indicating potential undervaluation [2][4] - A screening criterion of an earnings yield greater than 10% is established, alongside other parameters like estimated EPS growth and average daily volume [6][7] Company Highlights - IAMGOLD Corporation (IAG) is a gold exploration and mining company with projected earnings growth of 44% and 40% for 2025 and 2026, respectively, and currently holds a Zacks Rank 1 [9] - Plains GP Holdings (PAGP) is involved in crude oil and refined products transportation, with earnings growth estimates of 206% and 24% for 2025 and 2026, respectively, also holding a Zacks Rank 1 [10][11] - Hope Bancorp (HOPE) provides commercial banking services, with earnings growth estimates of 12% and 40% for 2025 and 2026, and holds a Zacks Rank 1 [12] - CommScope Holding Company, Inc. (COMM) offers communication network infrastructure solutions, with an extraordinary earnings growth estimate of 3,167% for 2025 and 28% for 2026, holding a Zacks Rank 2 [13] - Harmony Biosciences Holdings Inc. (HRMY) focuses on therapies for rare neurological disorders, with earnings growth estimates of 22% and 32% for 2025 and 2026, and holds a Zacks Rank 2 [14]

Core Viewpoint - Hope Bancorp reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, and showing a decrease from $0.22 per share a year ago, resulting in an earnings surprise of -9.52% [1][2] Financial Performance - The company posted revenues of $133.43 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.13%, compared to $116.93 million in the same quarter last year [2] - Over the last four quarters, Hope Bancorp has exceeded consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Hope Bancorp shares have declined approximately 7.6% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for outperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $134.68 million, and for the current fiscal year, it is $0.95 on revenues of $519.89 million [7] - The outlook for the industry, particularly the Banks - West sector, is favorable, ranking in the top 28% of over 250 Zacks industries, which historically outperforms the bottom 50% by more than 2 to 1 [8]

[Company Overview and Highlights](index=1&type=section&id=Company%20Overview%20and%20Highlights) Hope Bancorp reported a net loss in Q2 2025 due to significant items, but saw growth in net interest income and expanded its market presence through acquisition [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Hope Bancorp recorded a $27.9 million net loss in Q2 2025, or $0.22 diluted EPS, driven by significant items, but adjusted net income was $24.5 million, or $0.19 diluted EPS Financial Performance Summary | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q1 2025 (GAAP) | Q1 2025 (Adjusted) | | :--------------------- | :----------------------- | :------------------------------- | :----------------------- | :------------------------------- | | Net Income / (Loss) | $(27.9) million USD | $24.5 million USD | $21.1 million USD | $22.9 million USD | | Diluted EPS / (Loss) | $(0.22) | $0.19 | $0.17 | $0.19 | - Significant items totaled **$52.4 million** (after-tax), including net loss on securities sales, M&A-related expenses, and a one-time impact from California tax law changes[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Kevin S. Kim highlighted Q2 2025 as a milestone with the successful Territorial Bancorp acquisition, driving net interest income growth and net interest margin expansion - Completed the acquisition of Territorial Bancorp Inc., expanding operations into the Hawaii market[4](index=4&type=chunk) Key Performance Indicators | Metric | Q2 2025 QoQ Change | | :----------------- | :--------------------- | | Net Interest Income | Increased 17% | | Net Interest Margin | Expanded 15 bps | | Adjusted Net Income | Increased 7% | - Strategically sold a portion of the legacy investment securities portfolio, projected to increase annual interest income by approximately **$12 million** to enhance future profitability[5](index=5&type=chunk) [About Hope Bancorp, Inc.](index=6&type=section&id=About%20Hope%20Bancorp%2C%20Inc.) Hope Bancorp, Inc., the holding company for Bank of Hope, is the largest regional Korean-American bank in the U.S., with $18.55 billion in total assets as of June 30, 2025 - Total assets of **$18.55 billion** as of June 30, 2025[31](index=31&type=chunk) - Became the largest regional bank serving diverse multicultural customers across the U.S. mainland and Hawaii through the acquisition of Territorial Savings[31](index=31&type=chunk) - Operates **46** Bank of Hope full-service branches and **29** Territorial Savings branches, along with loan production offices across the U.S[31](index=31&type=chunk) [Operating Results for the 2025 Second Quarter](index=1&type=section&id=Operating%20Results%20for%20the%202025%20Second%20Quarter) Hope Bancorp's Q2 2025 operating results show significant growth in net interest income and margin, alongside impacts from acquisition-related expenses and tax law changes [Net interest income and net interest margin](index=1&type=section&id=Net%20interest%20income%20and%20net%20interest%20margin) Net interest income increased 17% to $117.5 million in Q2 2025, with net interest margin expanding 15 basis points to 2.69%, driven by loan growth and lower deposit costs Net Interest Income and Margin Trends | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :----------------- | :------------- | :------------- | :------- | | Net Interest Income | $117.5 million USD | $100.8 million USD | Increased 17% | | Net Interest Margin | 2.69% | 2.54% | Expanded 15 bps | | Average Loan Growth | 7% | - | - | | Average Cost of Interest-Bearing Deposits | 3.77% | 4.14% | Decreased 37 bps | [Noninterest income](index=2&type=section&id=Noninterest%20income) Noninterest income was negative $23.0 million in Q2 2025 due to a $38.9 million net loss on securities sales, but adjusted noninterest income remained stable at $15.9 million Noninterest Income Breakdown | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | Noninterest Income (GAAP) | $(23.0) million USD | $15.7 million USD | N/A | | Net Loss on Securities Sales | $(38.9) million USD | $0 million USD | N/A | | Noninterest Income (Adjusted) | $15.9 million USD | $15.7 million USD | Increased | | Net Gains on SBA Loan Sales | $4.0 million USD | $3.1 million USD | Increased 28% | [Noninterest expense](index=2&type=section&id=Noninterest%20expense) Total noninterest expense was $109.5 million in Q2 2025, with adjusted expenses rising to $92.2 million due to the Territorial acquisition, while the adjusted efficiency ratio improved to 69.1% Noninterest Expense and Efficiency | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q1 2025 (GAAP) | Q1 2025 (Adjusted) | | :--------------------- | :----------------------- | :------------------------------- | :----------------------- | :------------------------------- | | Noninterest Expense | $109.5 million USD | $92.2 million USD | $83.9 million USD | $81.3 million USD | | Efficiency Ratio (Adjusted) | 69.1% | - | 69.8% | - | - The quarter-over-quarter increase in noninterest expense primarily reflects the integration of Territorial's operations[10](index=10&type=chunk) [Income tax provision (benefit) and tax rate](index=2&type=section&id=Income%20tax%20provision%20(benefit)%20and%20tax%20rate) Hope Bancorp recognized a $2.0 million income tax benefit in Q2 2025 due to GAAP net loss, with the effective tax rate (adjusted) at 20.1%, down from 24.2% in Q1 Income Tax and Effective Tax Rate | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q1 2025 (GAAP) | | :--------------------- | :----------------------- | :------------------------------- | :----------------------- | | Income Tax Provision (Benefit) | $(2.0) million USD | - | $6.7 million USD | | Effective Tax Rate | 6.7% | 20.1% | 24.2% | - California tax law changes resulted in a **$4.9 million** deferred tax asset revaluation, expected to reduce the company's ongoing effective tax rate by approximately **1%**[10](index=10&type=chunk) [Balance Sheet Summary](index=2&type=section&id=Balance%20Sheet%20Summary) Hope Bancorp's balance sheet as of June 30, 2025, reflects growth in loans and deposits driven by the Territorial acquisition, alongside strategic adjustments in investment securities and reduced borrowings [Cash and investment securities](index=2&type=section&id=Cash%20and%20investment%20securities) Cash and due from banks decreased to $689.7 million, while investment securities increased 9% to $2.27 billion as of June 30, 2025, following the Territorial acquisition and portfolio reallocation Cash and Investment Securities Overview | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :----------------- | :------------- | :------------- | :------- | | Cash and Due from Banks | $689.7 million USD | $733.5 million USD | Decreased (6)% | | Investment Securities | $2.27 billion USD | $2.09 billion USD | Increased 9% | - Sold **$417.9 million** of legacy AFS investment securities with an average weighted book yield of **2.33%**, and reinvested proceeds into higher-yielding securities with an average current market yield of **5.42%**[13](index=13&type=chunk) [Loans](index=3&type=section&id=Loans) Total loans (excluding held for sale) grew 8% to $14.43 billion as of June 30, 2025, with the Territorial acquisition contributing $1.07 billion and residential mortgage loans increasing significantly Loan Growth and Composition | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | Total Loans (excluding loans held for sale) | $14.43 billion USD | $13.34 billion USD | Increased 8% | | Territorial Acquisition Loan Contribution | $1.07 billion USD | - | - | | Residential Mortgage and Other Loans | Increased 96% | - | - | | Residential Mortgage Loan % of Total | 16% | 9% | Increased 7% | Loan Portfolio Composition (June 30, 2025) | Loan Type | Balance (in thousands USD) | Percentage | | :----------------- | :-------------- | :--- | | Commercial Real Estate (CRE) Loans | $8,385,764 | 58.0% | | Commercial and Industrial (C&I) Loans | $3,725,295 | 25.8% | | Residential Mortgage and Other | $2,323,728 | 16.1% | | **Total Loans** | **$14,434,787** | **99.9%** | [Deposits](index=3&type=section&id=Deposits) Total deposits increased 10% to $15.94 billion as of June 30, 2025, largely due to the Territorial acquisition, while brokered deposits decreased 19% to $797.1 million, representing 5% of total deposits Deposit Trends and Composition | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :----------------- | :------------- | :------------- | :------- | | Total Deposits | $15.94 billion USD | $14.49 billion USD | Increased 10% | | Territorial Acquisition Deposit Contribution | $1.67 billion USD | - | - | | Brokered Deposits | $797.1 million USD | $980.3 million USD | Decreased 19% | | Brokered Deposits % of Total Deposits | 5% | 7% | Decreased 2% | Deposit Portfolio Composition (June 30, 2025) | Deposit Type | Balance (in thousands USD) | Percentage | | :--------------------- | :-------------- | :--- | | Noninterest-Bearing Demand Deposits | $3,485,502 | 21.9% | | Money Market, Interest-Bearing Demand and Savings Deposits | $6,102,999 | 38.3% | | Time Deposits | $6,354,854 | 39.8% | | **Total Deposits** | **$15,943,355** | **100.0%** | [Borrowings](index=3&type=section&id=Borrowings) FHLB and FRB borrowings decreased significantly to $29.8 million as of June 30, 2025, from $100.0 million in Q1, reflecting repayment of maturing obligations and post-acquisition adjustments Borrowings Overview | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | FHLB and FRB Borrowings | $29.8 million USD | $100.0 million USD | Decreased (70)% | [Credit Quality and Allowance for Credit Losses](index=3&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Hope Bancorp's credit quality saw a reduction in criticized loans but an increase in nonperforming assets due to a specific CRE loan, with net charge-offs rising and allowance coverage slightly decreasing post-acquisition [Criticized loans](index=3&type=section&id=Criticized%20loans) Criticized loans decreased by $34.0 million (8%) to $414.7 million as of June 30, 2025, with special mention loans declining 26% quarter-over-quarter, improving the criticized loans to total loans ratio to 2.87% Criticized Loans Performance | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :----------------- | :------------- | :------------- | :------- | | Criticized Loans | $414.7 million USD | $448.7 million USD | Decreased (8)% | | Special Mention Loans | Decreased 26% | - | - | | Criticized Loans / Total Loans Ratio | 2.87% | 3.36% | Improved | [Nonperforming assets](index=4&type=section&id=Nonperforming%20assets) Nonperforming assets increased to $112.9 million, or 0.61% of total assets, as of June 30, 2025, primarily due to the migration of one commercial real estate loan Nonperforming Assets Overview | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :----------------- | :------------- | :------------- | :------- | | Nonperforming Assets | $112.9 million USD | $83.9 million USD | Increased | | Nonperforming Assets / Total Assets Ratio | 0.61% | 0.49% | Increased | - The increase in nonperforming assets was primarily driven by the migration of one commercial real estate loan[19](index=19&type=chunk) [Net charge offs](index=4&type=section&id=Net%20charge%20offs) Net charge-offs rose to $12.0 million in Q2 2025, representing an annualized 0.33% of average loans, up from $8.3 million (0.25% annualized) in the prior quarter Net Charge-offs Performance | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | Net Charge-offs | $12.0 million USD | $8.3 million USD | Increased | | Net Charge-offs / Average Loans (Annualized) | 0.33% | 0.25% | Increased | [Allowance for credit losses](index=4&type=section&id=Allowance%20for%20credit%20losses) Total allowance for credit losses was $149.5 million as of June 30, 2025, with the coverage ratio decreasing to 1.04% of total loans, reflecting the impact of the Territorial acquisition Allowance for Credit Losses | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | Allowance for Credit Losses | $149.5 million USD | $147.4 million USD | Increased | | Allowance Coverage / Loans Receivable | 1.04% | 1.11% | Decreased | - The decrease in allowance coverage primarily reflects the impact of high-quality loans acquired through the Territorial acquisition[21](index=21&type=chunk) [Provision for credit losses](index=4&type=section&id=Provision%20for%20credit%20losses) Provision for credit losses was $15.0 million in Q2 2025, including $4.5 million in M&A-related provisions, with the adjusted provision rising to $10.5 million due to increased net charge-offs and unfunded commitments Provision for Credit Losses | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q1 2025 (GAAP) | | :--------------------- | :----------------------- | :------------------------------- | :----------------------- | | Provision for Credit Losses | $15.0 million USD | $10.5 million USD | $4.8 million USD | | M&A-Related Provision Expense | $4.5 million USD | - | - | - The increase in adjusted provision primarily reflects higher net charge-offs and an increase in the reserve for unfunded loan commitments[23](index=23&type=chunk) [Capital](index=5&type=section&id=Capital) Hope Bancorp and Bank of Hope maintained capital ratios above all 'well-capitalized' regulatory requirements as of June 30, 2025, despite some quarter-over-quarter adjustments due to the Territorial acquisition [Capital Ratios](index=5&type=section&id=Capital%20Ratios) Both the company and the bank exceeded all 'well-capitalized' regulatory capital requirements as of June 30, 2025, with quarter-over-quarter changes reflecting the Territorial acquisition Hope Bancorp Capital Ratios (June 30, 2025) | Capital Ratio | June 30, 2025 | March 31, 2025 | 'Well-Capitalized' Minimum Requirement | | :--------------------- | :------------- | :------------- | :------------------- | | Common Equity Tier 1 Capital Ratio | 12.06% | 13.28% | 6.50% | | Tier 1 Capital Ratio | 12.76% | 14.02% | 8.00% | | Total Capital Ratio | 13.76% | 15.06% | 10.00% | | Leverage Ratio | 10.57% | 11.92% | 5.00% | - All capital ratios exceeded regulatory requirements, meeting 'well-capitalized' thresholds[25](index=25&type=chunk) [Stockholders' Equity and Tangible Common Equity](index=5&type=section&id=Stockholders%27%20Equity%20and%20Tangible%20Common%20Equity) Total stockholders' equity increased 3% to $2.22 billion as of June 30, 2025, while tangible common equity (TCE) per share and TCE ratio decreased, reflecting the Territorial acquisition Stockholders' Equity and TCE | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--------------------- | :------------- | :------------- | :------- | | Total Stockholders' Equity | $2.22 billion USD | $2.16 billion USD | Increased 3% | | TCE per Share | $13.26 | $13.99 | Decreased | | TCE Ratio | 9.43% | 10.20% | Decreased | - Issued **6,976,754** shares of common stock valued at **$73.3 million** for the Territorial acquisition[27](index=27&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides details on the upcoming investor conference call, clarifies the use of non-GAAP financial metrics, and outlines forward-looking statements and contact information [Investor Conference Call](index=5&type=section&id=Investor%20Conference%20Call) Hope Bancorp announced an investor conference call on July 22, 2025, to review Q2 2025 unaudited financial results, accessible via phone or the company's investor relations website - The investor conference call is scheduled for July 22, 2025, at **9:30 AM Pacific Time / 12:30 PM Eastern Time**[28](index=28&type=chunk) - Conference presentation and webcast are available on the Hope Bancorp Investor Relations website[28](index=28&type=chunk) [Non-GAAP Financial Metrics](index=6&type=section&id=Non-GAAP%20Financial%20Metrics) This release includes non-GAAP financial metrics such as adjusted net income, EPS, noninterest income/expense, and TCE ratios, which management believes provide meaningful supplemental information, with GAAP reconciliations provided - Various non-GAAP financial metrics are used, including adjusted net income, EPS, noninterest income, noninterest expense, provision for credit losses, efficiency ratio, effective tax rate, PPNR, ROA, ROE, ROTCE, TCE per share, and TCE ratio[30](index=30&type=chunk) - Management believes these non-GAAP metrics provide meaningful supplemental information, and quantitative reconciliations to GAAP measures are provided in the accompanying financial information[30](index=30&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially, including integration challenges, economic conditions, and regulatory risks - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations[33](index=33&type=chunk) - Key risks include difficulties integrating Territorial Bancorp, transaction costs, deposit attrition, operating costs, customer retention, deteriorating economic conditions, interest rate risk, liquidity risk, credit loss risk, regulatory risk, and natural disasters[33](index=33&type=chunk) [Contacts](index=7&type=section&id=Contacts) Contact information for investor relations is provided, including Julianna Balicka (EVP & CFO) and Angie Yang (SVP, Director of Investor Relations), with their respective phone numbers and email addresses - Investor Relations contacts: Julianna Balicka (EVP & Chief Financial Officer) and Angie Yang (SVP, Director of Investor Relations)[34](index=34&type=chunk)

Core Insights - Hope Bancorp (HOPE) is positioned to potentially continue its earnings-beat streak, particularly in light of its recent performance in the Zacks Banks - West industry [1] - The company has a history of beating earnings estimates, with an average surprise of 5.41% over the last two quarters [1] Earnings Performance - For the most recent quarter, Hope Bancorp reported earnings of $0.18 per share against an expectation of $0.19 per share, resulting in a surprise of 5.56% [2] - In the previous quarter, the company exceeded the consensus estimate of $0.19 per share by reporting $0.20 per share, achieving a surprise of 5.26% [2] Earnings Estimates and Predictions - Recent estimates for Hope Bancorp have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [5] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better historically leads to a positive surprise rate of nearly 70% [6] Current Earnings ESP and Outlook - Hope Bancorp currently has an Earnings ESP of +6.02%, reflecting increased analyst optimism regarding its near-term earnings potential [8] - The stock holds a Zacks Rank of 1 (Strong Buy), suggesting a high likelihood of another earnings beat in the upcoming report scheduled for July 22, 2025 [8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Hope Bancorp despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hope Bancorp is expected to report quarterly earnings of $0.21 per share, reflecting a -4.6% change year-over-year, while revenues are projected at $125.92 million, an increase of 7.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 5.63% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +6.02% for Hope Bancorp, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Hope Bancorp exceeded the expected earnings of $0.18 per share by delivering $0.19, resulting in a surprise of +5.56% [13]. Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Investment Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15].

Core Viewpoint - The article discusses the investment potential of CAPR, highlighting the author's long position in the shares and expressing a positive outlook on the company's future performance [1]. Group 1 - The author has a beneficial long position in CAPR shares, indicating confidence in the company's growth prospects [1]. - The article emphasizes that the opinions expressed are solely those of the author and not influenced by external compensation [1]. Group 2 - There is a clear distinction made regarding the nature of the analysis, stating that it does not constitute investment advice or recommendations [2]. - The article notes that past performance is not indicative of future results, which is a standard disclaimer in investment analysis [2].

Market Overview - The U.S. stock market has rebounded from April lows, ending the first half of the year positively, aided by a strong June jobs report and easing tariff concerns [1] - Despite the recovery, caution persists due to unresolved trade tensions and uncertainty regarding the Federal Reserve's interest rate decisions [1] Investment Strategy - In an unpredictable market, value investing is recommended, focusing on undervalued stocks with strong fundamentals for stability and long-term gains [2] - Investing in solid businesses trading at fair or discounted prices is suggested over chasing volatile, hype-driven stocks [2] Value Stocks - Notable value stocks with high earnings yield include Fresenius Medical Care AG & Co (FMS), Eldorado Gold (EGO), Hope Bancorp Inc. (HOPE), and Heritage Insurance Holdings, Inc. (HRTG) [3][9] - These stocks have earnings yields above 10% and strong growth forecasts, making them attractive for value-focused investors [9] Earnings Yield Metric - Earnings yield is calculated as (Annual Earnings per Share/Market Price) x 100, indicating the anticipated return from earnings for each dollar invested [4] - A higher earnings yield suggests a stock is underpriced compared to its peers, while a lower yield indicates it may be overpriced [4] Comparison with Treasury Yield - Earnings yield can be compared with the 10-year Treasury yield to assess the relative attractiveness of stocks versus bonds [5] - When the market index yield exceeds the 10-year Treasury yield, stocks may be considered undervalued, making them a better option for value investors [5] Stock Screening Criteria - A primary screening criterion is an earnings yield greater than 10%, supplemented by estimated EPS growth and average daily trading volume [6][7] - Stocks should also have a current price of at least $5 to ensure adequate liquidity [8] Stock Performance and Growth Estimates - Fresenius Medical Care is projected to have year-over-year earnings growth of 33% and 12% for 2025 and 2026, respectively, with upward revisions in EPS estimates [10] - Eldorado Gold anticipates earnings growth of 10% and 55% for the same years, also showing upward revisions in EPS estimates [11] - Hope Bancorp expects year-over-year growth of 12% and 40%, with recent upward revisions in EPS estimates [12] - Heritage Insurance forecasts significant growth of 62% and 13% for 2025 and 2026, respectively, with substantial upward revisions in EPS estimates [13]

PART I [Financial Statements](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents Hope Bancorp, Inc.'s unaudited consolidated financial statements, including the balance sheet, income statement, comprehensive income, equity changes, and cash flows, with supporting notes [Consolidated Statements of Financial Condition (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition%20%28Unaudited%29) Hope Bancorp's total assets slightly increased to $17.07 billion as of March 31, 2025, driven by higher cash and lower net loans, with total equity rising to $2.16 billion Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total cash and cash equivalents | $733,482 | $458,199 | | Investment securities (AFS & HTM) | $2,088,586 | $2,075,628 | | Loans receivable, net | $13,187,882 | $13,467,745 | | Goodwill | $464,450 | $464,450 | | **Total assets** | **$17,068,316** | **$17,054,008** | | **Liabilities & Equity** | | | | Total deposits | $14,488,319 | $14,327,489 | | FHLB and FRB borrowings | $100,000 | $239,000 | | **Total liabilities** | **$14,908,283** | **$14,919,503** | | **Total stockholders' equity** | **$2,160,033** | **$2,134,505** | [Consolidated Statements of Income (Unaudited)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20%28Unaudited%29) Net income for Q1 2025 decreased to $21.1 million, primarily due to lower net interest income, partially offset by increased noninterest income and reduced noninterest expense Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $100,817 | $115,047 | | Provision for Credit Losses | $4,800 | $2,600 | | Noninterest Income | $15,688 | $8,286 | | Noninterest Expense | $83,861 | $84,839 | | **Net Income** | **$21,096** | **$25,864** | | **Diluted EPS** | **$0.17** | **$0.21** | [Consolidated Statements of Comprehensive Income (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Unaudited%29) Total comprehensive income significantly increased to $42.7 million in Q1 2025, driven by net income and a positive unrealized gain on available-for-sale securities Comprehensive Income Summary (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $21,096 | $25,864 | | Change in unrealized gains on securities AFS | $32,705 | $(13,734) | | Other comprehensive income (loss), net of tax | $21,560 | $(17,540) | | **Total Comprehensive Income** | **$42,656** | **$8,324** | [Consolidated Statements of Changes in Stockholders' Equity (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20%28Unaudited%29) Stockholders' equity increased to $2.16 billion by March 31, 2025, primarily due to net income and other comprehensive income, partially offset by cash dividends - Key drivers for the change in stockholders' equity in Q1 2025 were **net income of $21.1 million** and **other comprehensive income of $21.6 million**, which were partially offset by **cash dividends of $16.9 million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash provided by operating, investing, and financing activities led to a $275.3 million increase in cash and cash equivalents during Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,667 | $29,619 | | Net cash provided by investing activities | $245,800 | $247,124 | | Net cash provided by (used in) financing activities | $2,816 | $(1,020,414) | | **Net Change in Cash and Cash Equivalents** | **$275,283** | **$(743,671)** | [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides detailed disclosures on accounting policies, financial statement line items, regulatory matters, commitments, and subsequent events, supporting the primary financial statements [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2025 financial results, highlighting decreased net income due to lower net interest income, alongside analysis of loan and deposit portfolios, asset quality, capital, and liquidity [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Net income for Q1 2025 decreased to $21.1 million due to lower net interest income, partially offset by a significant increase in noninterest income and a slight decrease in noninterest expense Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $21.1M | $25.9M | | Diluted EPS | $0.17 | $0.21 | | Net Interest Income | $100.8M | $115.0M | | Net Interest Margin | 2.54% | 2.55% | | Provision for Credit Losses | $4.8M | $2.6M | | Noninterest Income | $15.7M | $8.3M | | Noninterest Expense | $83.9M | $84.8M | - The decrease in net interest income was primarily driven by a **lower average balance of interest-earning cash** and **lower yields on loans**, reflecting benchmark interest rate cuts in the second half of 2024[202](index=202&type=chunk) - Noninterest income saw a significant increase, mainly due to **$3.1 million in net gains on sales of SBA loans**, a practice resumed in Q2 2024, and a **$0.5 million increase in swap fees**[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - Noninterest expense decreased, largely due to **lower earned interest credit expense ($2.7 million decrease)** and the absence of the prior year's **$1.0 million FDIC special assessment**, partially offset by a **$1.3 million increase in merger-related costs**[224](index=224&type=chunk) [Financial Condition](index=68&type=section&id=Financial%20Condition) As of March 31, 2025, total assets remained stable at $17.07 billion, with decreased loans and increased deposits, while asset quality improved and stockholders' equity rose to $2.16 billion Loan Portfolio Composition (in billions) | Loan Type | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Commercial real estate (CRE) | $8.38 | $8.53 | | Commercial and industrial (C&I) | $3.76 | $3.97 | | Residential mortgage | $1.16 | $1.08 | | **Total Loans Receivable** | **$13.34** | **$13.62** | Asset Quality Metrics | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Nonperforming Assets | $83.9M | $90.8M | | Nonperforming Assets / Total Assets | 0.49% | 0.53% | | Allowance for Credit Losses (ACL) | $147.4M | $150.5M | | ACL / Loans Receivable | 1.11% | 1.11% | - Total deposits increased by **$160.8 million** to **$14.49 billion**, with growth in customer deposits offsetting planned reductions in brokered deposits[261](index=261&type=chunk) - Stockholders' equity increased by **$25.5 million**, primarily due to net income and a decrease in accumulated other comprehensive loss[277](index=277&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintained strong liquidity with $8.41 billion in available sources and remained well-capitalized under regulatory standards, with $35.3 million remaining for stock repurchases - Total available liquidity sources stood at **$8.41 billion** as of March 31, 2025, with an available borrowing capacity of **$5.84 billion** from the FHLB and FRB[284](index=284&type=chunk) Bank of Hope Capital Ratios (March 31, 2025) | Ratio | Actual | Required to be Well-Capitalized | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.80% | 6.50% | | Tier 1 Capital | 13.80% | 8.00% | | Total Capital | 14.85% | 10.00% | | Leverage Capital | 11.73% | 5.00% | - The Company's stock repurchase program, approved in January 2022, had **$35.3 million** remaining available for repurchases as of March 31, 2025[278](index=278&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Company manages interest rate risk, with sensitivity analysis showing NII and EVE changes under various rate scenarios, influenced by swap terminations and funding mix shifts Net Interest Income (NII) Sensitivity (12-Month Ramp) | Interest Rate Change (bps) | -300 | -200 | -100 | +100 | +200 | +300 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **NII % Change (Mar 31, 2025)** | (6.6)% | (4.5)% | (2.3)% | 2.5% | 4.8% | 6.8% | Economic Value of Equity (EVE) Sensitivity (Immediate Shock) | Interest Rate Change (bps) | -300 | -200 | -100 | +100 | +200 | +300 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **EVE % Change (Mar 31, 2025)** | 3.7% | 4.5% | 3.0% | (3.8)% | (8.3)% | (13.6)% | - Changes in the interest rate sensitivity profile compared to the prior year are attributed to the **termination of the receive-fixed swap portfolio** and a **shift in funding mix**, including growth in time deposits[294](index=294&type=chunk)[296](index=296&type=chunk) [Controls and Procedures](index=80&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Company's **disclosure controls and procedures were effective** as of March 31, 2025[299](index=299&type=chunk) - No **material changes to the internal control over financial reporting** occurred during the first quarter of 2025[300](index=300&type=chunk) PART II [Legal Proceedings](index=81&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The Company is involved in various legal claims with accrued loss contingencies of approximately $305,000, which management does not expect to have a material adverse effect - Accrued loss contingencies for legal claims were approximately **$305,000** at March 31, 2025[303](index=303&type=chunk) [Risk Factors](index=81&type=section&id=Item%201A.%20RISK%20FACTORS) No material changes to the risk factors previously disclosed in the Company's 2024 Annual Report on Form 10-K were reported - No **material changes to risk factors** from the 2024 Form 10-K were reported[304](index=304&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The Company had no unregistered sales of equity securities or repurchase activity in Q1 2025, with $35.3 million remaining available under the stock repurchase program - The Company did not repurchase any shares of its **common stock** during the three months ended March 31, 2025[307](index=307&type=chunk) - As of March 31, 2025, **$35.3 million** remained available for future repurchases under the existing stock repurchase program[307](index=307&type=chunk) [Other Information](index=82&type=section&id=Item%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - No **director or officer adopted or terminated a Rule 10b5-1 trading plan** in Q1 2025[311](index=311&type=chunk)